May 11. Norwegian Cruise Line Holdings Ltd. (NCLH), parent of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, reported financial results for the first quarter ended March 31, 2022 and provided a business update. NCLH’s GAAP net loss was $1 billion compared to net loss of $1.4 billion in the prior year. The company reported an Adjusted Net Loss of $760.5 million or in 2022. This compares to an Adjusted Net Loss of $668.6 million in 2021. Revenue increased to $521.9 million compared to $3.1 million in 2021 due to the resumption of cruise voyages.
Total cruise operating expense increased 266.1 percent in 2022 compared to 2021, primarily due to the resumption of cruise voyages. The increase in 2022 reflects higher payroll, fuel, and direct variable costs of fully operating ships. Cost for certain items such as food, fuel and logistics also increased due to inflation. In addition, in 2022 there was an increase in repair and maintenance costs, including planned Dry-docks.
NCLH completed its phased fleet relaunch on May 7, 2022 and its entire 28-ship fleet is now back in operation. This significant achievement marks the completion of a nearly 10-month long process to return ships to service which began with Norwegian Jade in July 2021.
By the end of the first quarter of 2022 the company had 85 percent of its capacity operating. Occupancy in the first quarter of 2022 was 48 percent primarily reflecting the impact of Omicron, which caused operational challenges and disruptions, including additional travel restrictions, increased health-related protocols and certain port closures. During the surge, the company continued to follow its core go-to-market strategy and did not discount-to-fill in order to boost near-term load factors.
Source: Insider Travel